Under HOTMA, some items are excluded from income, some are excluded from assets, and some are excluded from both income and assets. Other items are not excluded at all. Keeping track of the difference is important.

Note: Questions 1-5 were in last month's post.

6. ABLE accounts with employer contributions (separate from wages) into the account

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | See reference HUD Notice H-2019-06 and 5.603(b) Net family assets (3)(iv). Employer contributions separate from wages are excluded from income by HUD Notice and are also excluded from net family assets by HOTMA HUD regulation. 

7. IRS-recognized retirement accounts with periodic withdrawals

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | See references 24 CFR 5.609(b)(26) and 5.603(b) Net family assets (3)(iii). Both the asset and any income earned are excluded from the account. However, the periodic withdrawals are not excluded from income.  

8. Revocable trust under the control of the family 

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | Revocable trusts under the control of a family are assets, and income earned by the trust is counted as income to the family as it is earned. See 24 CFR 5.609(b)(2)(ii).

9. Food stamps

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | Food stamps are excluded as income by the food stamp law. HUD has also clarified that balances associated with food stamps are excluded as assets. See reference HUD Notice Federal Register FR–6410–N–01 Federally Mandated Exclusions From Income—Updated Listing (1).   

10. PASS account (Plan to Attain Self-Sufficiency SSI account)

Under HOTMA, some items are excluded from income, some are excluded from assets, and some are excluded from both income and assets. Other items are not excluded at all. Keeping track of the difference is important.

1. Federal tax refunds or refundable credits

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | See reference 24 CFR 5.609(b)(24)(iii) and (iv) and 5.603(b) Net family assets (3)(xi). These are excluded as nonrecurring income and are also excluded from net family assets. 

2. State tax refunds or refundable credits

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | See reference 24 CFR 5.609(b)(24)(iii), where these are excluded as nonrecurring income. However, they are not excluded from net family assets, unlike federal refunds/credits at 5.603(b) Net family assets (3)(xi).

3. TANF 

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | Temporary Assistance for Needy Families (TANF) is not listed as excluded anywhere in HUD regulations. 

4. IRS-recognized retirement accounts without periodic withdrawals

A. Income exclusion only
B. Asset exclusion only
C. Both income and an asset exclusion
D. Neither an income nor an asset exclusion

Details | See references 24 CFR 5.609(b)(26) and 5.603(b) Net family assets (3)(iii). Both the asset and any income earned is excluded. Only periodic withdrawals are income.  

5. Irrevocable trust with income distributions to the family

HOME 2025 didn’t just touch rents (as tested in the last quiz) — it updated inspections, income determinations, and recordkeeping requirements. Test yourself on the changes here.

1. Which inspection protocol now applies to HOME-assisted rental housing?

A. HQS (Housing Quality Standards)
B. UPCS (Uniform Physical Condition Standards)
C. NSPIRE (National Standards for the Physical Inspection of Real Estate)
D. PHA-determined local standards

Details | The new standard NSPIRE has or will replace HQS and UPCS for HOME. See 24 CFR § 92.251(a) [2025].

2. Participating Jurisdictions may continue to use the old income determination rules until April 20, 2026.

True

False

Details | See 24 CFR § 92.3(c) [2025].

3. Under HOME 2025, when does the HUD Part 5 definition of annual income become mandatory for all HOME-assisted units in a project?

A. Always — every HOME project must use Part 5 for all households.
B. Whenever a PJ chooses Part 5 as its standard policy for determining income.
C. When a PJ requires or allows an owner to rely on a PBRA or TBRA program’s income determination for assisted households.
D. Only if the project receives both HOME and LIHTC funding.

Details | See 24 CFR § 92.203(d) [2025].

4. Owners of HOME projects may refuse to rent to households solely because they have a Section 8 Housing Choice Voucher.

True

False

Details | Although new HOME 2025 tenant protections were put on hold, discrimination against voucher holders is still prohibited under existing HOME rules. See 24 CFR § 92.253(d).

5. Under HOME 2025, owners and PJs must maintain records on which of the following?

A. Rents and utility allowance methods
B. Inspections and income determinations
C. Affirmative marketing and fair housing compliance
D. All of the above

Details | See 24 CFR § 92.508 [2025].

This month's quiz tests provisions that are unique to specific housing programs. 

Options  | Section 8 PBRA | HOME Funds | LIHTC | NHTF | Rural Development 

1. Which of the above programs CURRENTLY has a planned rule that does not count unborn children as family members when selecting income limits? | Rural Development  

Details | RD has verbally said that the HOTMA guidance that states the above policy will change. Current written guidance still excludes unborn children from family members when HOTMA takes effect for RD. See RD HOTMA Unnumbered Letter of 8/19/2024. 

2. Which of the above programs has a minimum lease term of 6 months? | LIHTC 

Details | A minimum term of 6 months meets LIHTC non-transience requirements. See 8823 Guide [2024] XVIII (A), page 193. 

3. Which of the above programs does not have any student eligibility rules. | NHTF

4. Which of the above programs BY LAW requires that termination of household tenancy for almost any reason almost always be accompanied by a 30-day notice? | HOME

Details | The HOME statute enforces this provision. Other programs may have regulations and/or polices with similar provisions limited to nonpayment of rent. See 24 CFR 92.253(c). 

5. Which of the above programs does not allow charging application fees? | Section 8 PBRA

Details | See HUD Handbook 4350.3 4-7(E)(2).

With the HUD CPDs announcement HERE, we know the current HOTMA implementation deadlines for all HUD and RD programs affected by HOTMA. In this quiz, we test readers' knowledge of the deadlines. 

Which HOTMA deadlines below apply to the following programs?

1/01/2024 | 1/01/2025 | 7/01/2025 | 1/01/2026 | No federal deadline, monitoring agency decides

A. HUD Multifamily Housing (MFH) programs (Sec 8 PBRA, etc) | 7/01/2025

          Details | See HUD Notice H-2024-09

B. HUD CPD programs (HOME, NHTF etc) | 1/01/2026 

          Details | See Federal Register Notice HUD 2024-31401 dated 12/31/2024

C. HUD public housing and HCV programs | 7/01/2025

          Details | See HUD Notice PIH 2024-38

D. Rural Development Multifamily Housing programs | 7/01/2025

          Details | See 
RD MFH Stakeholder Announcement HOTMA Implementation update October 3, 2024

E. The LIHTC and bond programs | No federal deadline, monitoring agency decides

Details | See our article HERE for the 7 options states choose among. 

As we move into the HOTMA era, one Agency affected by HOTMA was silent. Rural Development has now issued guidance on how HOTMA will affect RD properties. This quiz focuses on issues likely to have the biggest impact on the operation of RD affordable housing.

1. Which of the following HOTMA provisions apply to RD properties?

A. De minimis errors.

B. Income exclusions. 

C. Adjusted income.

D. Asset exclusions.

Details | On this list, only the de minimis error rule will not apply to RD programs. See RD HOTMA Memorandum dated 2/29/2024.

2. RD is adopting HOTMA's requirement to conduct an interim when household income changes by 10%.

True or False

Details | RD already has existing regulations requiring income recertification when household income changes by $100 a month or changes of $50 or more per month if the tenant requests that such a change be made. This is not changed by HOTMA. See 7 CFR 3560.152(e).

3. LIHTC and HUD income determinations will not be allowable for RD use.

True or False 

Details | The HOTMA provision at 24 CFR 5.609(c) allowing owner/agents to use other program income determinations, including LIHTC and HUD programs, will not be applied to RD properties. See RD HOTMA Memorandum dated 2/29/2024.

4. Which of the following portions of HOTMA at 24 CFR do not apply to RD?

A. 5.609 (a) Income inclusions

B. 5.609 (b) Income exclusions

C. 5.609 (c) Interim thresholds and other rules

D. 5.611 Adjusted income

Details | On this list only 5.609(c) will not apply. See RD HOTMA Memorandum dated 2/29/2024.

5. RD will not allow the every-three-year streamlined income verification process. 

True or False 

Details | RD already has existing regulations requiring income recertification and verification annually. This is not changed by HOTMA. See 7 CFR 3560.152(e).

 As we move into the HOTMA era, we are focussing in this quiz on issues that are likely to have the biggest impact on the operation of affordable housing.

1. Which HOTMA provisions do NOT apply to LIHTC/HOME/NHTF properties?

A. Excluding IRS-recognized retirement accounts as assets.

B. The $50,000, as adjusted, threshold on imputed asset income. 

C. Asset limits for households with more than $100,000 in assets, as adjusted, and real property suitable for occupancy.

D. ABLE Accounts excluded as assets.

Details | The asset limitations in HOTMA only apply to HUD-assisted programs. HOTMA explicitly makes it clear that HOTMA does not apply to HOME and the NHTF, and does not apply to the calculation of income that applies to the LIHTC. See HOTMA Final Rule preamble  "Summary of Affected Programs" and §5.618 "Restriction on assistance to families based on assets."

2. Per HUD HOTMA guidance regarding verifications, which of the following are true:

A. Checking as valued using the current balance and with one statement.

B. Child support and alimony court-ordered amounts must be counted, even if not received.

C. Fixed income sources must be verified with benefit letters that must be no older than 120 days old at the time of receipt.  

D. Excluded income and assets must be verified.

Details | All of the above are untrue, except that checking will use a current balance. See Joint HOTMA Guidance J.5.a 

3. A family has access to a trust account. They are taking $500 monthly distributions from the trust. $250 is from the principal of the trust and $250 is from income. The $250 is income to the family.

True   False 

Details | If a family has access to a trust, the actual income from the trust is counted as it is earned, and any distributions are not counted (regardless of the makeup of the distributions). See §5.609 (b)(2)

4. Which of the following were NOT changed by HOTMA?

A. The assets disposed-of rules.

B. Imputed asset income rules.

C. Exclusion of retirement accounts

D. Student financial assistance rules.

Details | See §5.603 "Net Family Assets" (2).

5. A live-in aide's income is now counted, as is the income of foster children and adults. 

True   False

Details | Income of live-in aides is still excluded, and fosters' income is now also excluded. See §5.609 (b)(8) 

States LIHTC agencies report increased utility allowance calculation issues. As misunderstanding UA rules can create severe rent noncompliance, it is crucial to understand how UAs work. 

 1. An owner who implements a UA in January of one year and the next in November of the following year is in compliance with the LIHTC UA regulation.

True or False

Details | UAs must be reviewed and implemented at least once a calendar year, not annually (every 12 months). See Treas. Reg 1.42-10 (c)(2).

2.  Multiple UA calculation methods cannot be used for different utilities and once set, they cannot be changed from one year to the next, once set at lease-up.  

True or False

Details | An owner may utilize different UA methods for different utilities at a property and UA methodologies can be changed from year to year. See 8823 Guide 18-1. 

3. During a lease-up, a new UA does not need to be calculated until the property has been ______% occupied for ______ days.

A. 60 and 90

B. 90 and 60

C. 90 and 90

D. 100 and 100

Details | See Treas. Reg 1.42-10 (c)(1)

4. The LIHTC UA regulation was last revised in the year __________. 

A. 1990

B. 2008

C. 2016

D. 2019

Details | The LIHTC UA rules at Treas. Reg. 1-42-10 was last revised on March 4, 2019.

5. Once most types of UAs are calculated (such as HUSMS and engineer models), an owner/agent must give at least 30 days notice of the change to the tenants and the state LIHTC agency, or other notice per state or local law if longer than 30 days.

True or False 

Details | Once a new UA is calculated for these UA types, the owner must submit the new UA to the state LIHTC agency and the tenants and allow a 90-day review period. The new UA can only be implemented the next rent cycle after the 90-day period. See Treas. Reg 1.42-10 (c)(1).

Are you up-to-date on asset rules when certifying households? If so, how about how they will change in 2024 with HOTMA? Find out with this month's quiz.

1. Under pre-HOTMA rules, once a person started taking out periodic withdrawals for a retirement account, the balance of the retirement account was the value of the asset. The withdrawals were income.

True or False

Details | According to current HUD directions for pensions and retirement funds, "if benefits are received through periodic payments, do not count any remaining amounts in the account as an asset." [HUD 4350.3 5-6 (p)] So the balance of the retirement account is NOT counted as the value of the asset.  

2.  HOTMA | After HOTMA takes effect, IRS-recognized retirement accounts will never be counted as assets. Once the account owner starts taking out periodic payments, these will be income.  

True or False

Details | See the new 24 CFR  5.609(b)(26)

3. Under pre-HOTMA rules, imputed asset income is calculated if the total ________ value of household assets exceeds $5,000.

Market or Cash

Details | See HUD 4350.3 5-7.

4. HOTMA | After HOTMA, imputed income only applies to individual assets that cannot otherwise have income determined and only if household asset exceeds $50,000. 

True or False

Details | See the new 24 CFR § 5.609 (a)(2).

5. Which of the below-listed parts of the current HUD Handbook 4350.3 provided a list of pre-HOTMA asset inclusions and exclusions?

Chapter 6 | Appendix 3 | Exhibit 5-1 | Exhibit 5-2 | Chapter 8

Details | Bonus note: the Exhibit 5-2 is for assets. In addition to the 4350.3 income list found in Exhibit 5-1, a more up-to-date list has been published by HUD. It appears that most of the new "exclusions" listed in this document will still apply post-HOTMA as part of the new 24 CFR § 5.609 (b)(22). See HERE for more information. 

6. HOTMA | HOTMA adds several new asset types.

True or False

Details | HOTMA eliminates the list of inclusions, in favor of an extensively re-tooled list of exclusions. If it is not on the list of exclusions, it must be counted. This applies to both assets and periodic income.

Have you heard about HOTMA? It is huge news for the affordable housing industry. This quiz will explore an additional half a dozen possible common myths that have already started growing about what HOTMA actually says. Check out last month's quiz for the first six.

Are the below true or false?

1. For HOME and public housing, the Earned Income Disregard will be applied to households who qualify for the first time until 2026. 

TRUE or FALSE

Details | The EID applies to HOME and Public Housing programs and involves a 24-month period where new earned income is phased in. The EID will be applied for persons who qualify for the first time before 01/01/2024. After that, no new people will be added, but the 24 months will run out for those who qualified up to 01/01/2024. Thus, the EID will disappear for all no later than 01/01/2026. See 24 CFR 5.617(c) and 960.255(b) [2024]

2. Retirement accounts will no longer ever be counted as assets. They will be counted as periodic income once periodic withdrawals start to be made. 

TRUE or FALSE

Details | See 24 CFR 5.609(b)(26) [2024]

3. Interim adjustments for income-based HUD rent will not need to be conducted if the adjustment occurs 3 months or less before the household's annual certification date. 

TRUE or FALSE

Details | See 24 CFR 5.657(c)(3)(ii) [2024]

4. Interms will be necessary for HUD income-based rent when a household's gross annual income changes by 10% or more.

TRUE or FALSE

Details | It is 10% of the household's ADJUSTED, not gross income that will trigger the interim. Reference: See 24 CFR 5.657 [2024]

5.  If a HOME or NHTF project has a household with tenant-based federal or state rental subsidies, the owner and PJ must accept the TBRA determination of household income for HOME or NHTF purposes.

TRUE or FALSE

Details | While this is true for project-based subsidy for HOME and NHTF, and also required for NHTF units, it is an OPTION for HOME PJs, not required. See 24 CFR 92.252 [2024]

Have you heard about HOTMA? It is huge news for the affordable housing industry. This quiz will explore half a dozen possible common myths that have already started growing about what HOTMA actually says. Are the below true or false?

1. The dependent deduction when calculating adjusted income will be $525 starting in 2024. 

TRUE  or FALSE

Details | The amount will remain $480 when HOTMA takes effect, but will then be adjusted for inflation annually thereafter. The elderly household deduction is the one that will start at $525 in 2024.  24 CFR § 5.611 (a)(1)   

2. HOTMA does not require owners to deny occupancy to households with assets that exceed $100,000.

TRUE or FALSE

Details | The asset limitation is an option that HOTMA allows owners, but not a requirement. 24 CFR § 5.618 (c)(2)

 3. Foster children and adults will no longer qualify to live in HUD housing.

TRUE or FALSE

Details | Fosters will continue to be allowed to reside in HUD units and count for occupancy standards. They will no longer be counted for income limit purposes and their income will be excluded.  24 CFR § 5.609 (b)(8)

 4. Because it relates to adjusted income, the new dependent deduction will never affect income determinations for HOME, NHTF, or LIHTC properties.

TRUE or FALSE

Details | HOME may require adjusted income for over-income households (this will not change with HOTMA). HOME, LIHTC, and NHTF will all use the dependent deduction, which will limit earned income counted for adult dependent full-time students and adoption assistance payments. 24 CFR § 5.609(b)(14)) and (§ 5.609(b)(15))

5. LIHTC income determinations of gross household income may now be used for calculating income and rent for HUD programs.

TRUE or FALSE

Details | LIHTC income determinations may be used by HUD programs to determine gross income, along with SNAP, SSI, and other means-tested programs. 24 CFR § 5.609(c)(3)(E)  

6. If a HOME or NHTF project has project-based federal or state rental subsidies, the owner and PJ must accept the PBRA determination of household income for HOME or NHTF purposes.

TRUE or FALSE

Details | HOTMA now includes this provision in the HOME and NHTF regulations. HOME | 24 CFR § 92.203(a)(1)

NHTF | 24 CFR § 93.151(a)(1) through (3) 

90 days | 120 days | 2 months | 6 months | 180 days

Choose from the above options for questions 6 - 8.

[Note: questions 1-5 were in Part 1 of this series in last month's quiz]  

 6. According to the 8823 Guide, LIHTC verifications are good for 120 days from when they are received. 

Details | See 8823 Guide 4-21, 4350.3 5-16 B.

Note: several state HFA agencies consider this to be obsolete based on the updated HUD "120-day by receipts + 120-day after receipt" policy (for references, see Part 1 of this quiz).

7. Source document verifications for HOME are good for a cert that is no more than 6 months old. 

Details | See HOME Guide 3.2 D 3 & E 3 & 5; 24 CFR 92.203 (2013). Determinations of income for HOME are only good for 6 months prior to them being effective. 

8. Verifications at Rural Development properties with LIHTC funding are good for 120 days with verbal clarification. 

Details | Contrast 8823 Guide 4-21, 4350.3 5-16 B with HB-2-3560 6.8 

Note: this assumes that the 120-day limit found in the 8823 Guide is required by the state LIHTC Agency. If HUD's "120-day by receipts + 120-day after receipt" policy is allowed, this answer could be different and RD verifications may expire at 180 days before the LIHTC ones up to 240 days. 

9.  For most affordable housing programs, third-party verification is limited to forms completed by the third party that come directly to the owner/agent and do not go through the applicants'/residents' hands.

TRUE or FALSE

Details | See HOME Guide 3.2 D 3 & E 3 & 5; 24 CFR 92.203 (2013), HUD 4350.3 5-13 (B), Tres.Reg. 1.42-5, and IRS LIHC Newsletter #54.

Note: HOME has always considered the primary method of verification to be "source documents", which are documents prepared by a third party, regardless of whether these are delivered by the applicant/tenant or directly from the third party. A prominent example is paystubs. In 2013, HUD multifamily adopted a similar policy under Change 4 of the HUD Handbook 4350.3. These also meet the requirements of the Treasury regulations and the IRS considers HUD's definitions to be sufficient if the state HFA concurs. 

10. HUD and the IRS now consider paystubs to be third-party verifications. 

TRUE or FALSE

Details | See details in the above item.

90 days | 120 days | 2 months | 6 months | 180 days

Choose from the above options for these questions.  

1. HOME does not require VOE (Verification Of Employment) forms, but does require 2 months of wage history for employed persons in HOME units. 

Details | See HOME Guide 3.2 D 3 & E 3 & 5; 24 CFR 92.203 (2013) |NHTF 24 CFR 93.151 (d) and 93.302 (e)

2. Except for fixed income sources, verifications for HUD multifamily programs must be no older than 120 days when they are received. 

Details | See 4350.3 5-13 A, 5-16 B, Appendix 3, HUD MF Notice H-2016-09

3. Except for fixed income sources, verifications for HUD multifamily must be used for a certification that is effective no more than 120 days from receipt of the verifications.

Details | See 4350.3 5-13 A, 5-16 B, Appendix 3, HUD MF Notice H-2016-09

4. Rural Development verifications are generally good for 90 days from receipt. 

Details | See HB-2-3560 6.8 & 11 

5. With verbal confirmation, Rural Development Verifications may be good for 180 days.

Details | See HB-2-3560 6.8 & 11

Next month: Verifications | Part 2

As we move into a new year, we may find ourselves thinking of timelines, which may lead to thoughts of lease terms, which this quiz explores.

1. Which program has a minimum lease term that is less than 12 months? (select all that apply)

A) HUD Section 8

B) Rural Development

C) LIHTC

D) HOME

E) NHTF

Details | The LIHTC program has a 6-month minimum lease term requirement for most tax credit projects. All of the others generally have a minimum 12-month lease term. See § 42(i)(3)(B)(i) & The General Explanation of the Tax Reform Act of 1986 (the “Blue Book”); 8823 Guide chapter 20; § 42 (i)(3)(B)(iv).

2. Which programs have a federally-required model lease?

A) HUD Section 8

B) Rural Development

C) LIHTC

D) HOME

E) NHTF

Details | HUD Multifamily programs (including Section 8) have a model lease. The rest do not.

3. True or False

HOME and the HTF require that all lease terminations be given with 30 days' notice.

Details | This is a HOME requirement, but the NHTF requires that notice be given in a timeframe dictated by local law. See (HOME) CFR 92.253 (b) (2013) (HTF) 24 CFR 93.303 (a) - (c)

4. True or False

Rural Development leases are developed by an owner and approved by RD, but they must be certified by the owner's attorney to be in compliance with RD rules and local and state law.

Details | See HB-2-3560 Attachment 6-E & 6-F

5. True or False

The LIHTC program has a list of 9 lease provisions that are prohibited by law.

Details | The LIHTC program requires non-transience (generally requiring a minimum term of at least 6 months) but does not have prohibited lease provisions. This separates it from other programs that do not provide model leases, including the Rural Development, HOME, and NHTF programs.

1. Which agency will not provide rental assistance for zero-income households who do not at least have exempt income.   

      HUD | Rural Development

      Details | HUD allows zero-income households, but “it is recommended that owners have a policy to re-verify the status of tenants reporting zero income at least quarterly.” See HUD 4350.3 9-11 (D)(1)(a)

“It is the policy of Rural Development not to accept a tenant certification for an applicant or tenant with zero income unless all income is specifically exempted.” See HB-2-3560 6.9 (A)(4).

2. The IRS does not allow zero-income households to qualify tax credit units. 

      True or False

      Details | The IRS does not specifically forbid zero income households, however, “if the household reports little or zero income, or sporadic income, owners may use estimates based on actual income earned or received during the twelve-month period immediately preceding the certification. Owners should use due diligence by asking follow-up questions when the income certification process reveals unusual circumstances suggesting additional sources of income.” See 8823 Guide 4-33. The IRS LIHC Newsletter #15 (May 2005) provides further due diligence measures that owners can take to deal with households that represent that they have zero income.

NOTE: the answers to questions 1 - 5 were found in Part 1, below.

Are the following allowable deductions when determining adjusted income for programs that use HUD's adjusted income rules to calculate rent, like HUD, RD, and over-income HOME units?

6. $960 in dependent deductions for two dependent children (ages 15 and 16) in a household.
      Yes

      Details | $480 is allowed for each dependent. See HUD 4350.3 5-10 (A)(1).
7. $480 dependent deduction for a foster child.
      No

      Details | Foster children are not eligible for dependent deductions. See HUD 4350.3 5-10 (A)(1).
8. $800 in elderly deductions for a household with two members over age 62.
      No
      Details | Only $400 is allowed as an elderly household deduction for an entire household. See HUD 4350.3 5-10 (E).
9. Childcare for a 9-year-old foster child that allows a foster mother to work.
      Yes
      Details | Foster children are eligible for childcare deductions. See HUD 4350.3 5-10 (B)(1). 
10. Childcare that a father pays for his son that lives with his mother. 
      No 
      Details | Childcare must be for children in a household. See HUD 4350.3 5-10 (B)(3). 

1. To ensure consistency, when a resident or applicant requests a reasonable accommodation, verification of the requester's disability must always be obtained.        

       True or False

Details | Disabilities that are obvious or otherwise know to an owner/agent are not required to be verified. See Joint Statement of HUD and the DOJ on Reasonable Accommodations Under the Fair Housing Act, question 17.

2.  How does a property owned by an entity whose legal name contains a religious reference (for example St. Joseph's Catholic Housing) avoid discrimination when advertising?

Details | By ensuring that all advertising is accompanied by a disclaimer that the housing is open to all without discrimination. See FHEO Guidance Regarding Advertisements under Section 804(c) of the Fair Housing Act, Jan. 9, 1995, page 1.

3.  Affordable housing federal income limits do not apply to a person with a disability if they make a reasonable accommodation request to the limits.

True or False

Details | Reasonable accommodation "is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces." See Joint Statement of HUD and the DOJ on Reasonable Accommodations Under the Fair Housing Act, question 6). Income limits and other provisions to meet federal law are generally not subject to accommodation.

We recently updated our Multiple-Programs Guide and training courses to include provisions for the National Housing Trust Fund (HTF). The National HTF shares many provisions with HOME, but also has some key differences. This quiz explores these. 

 1. The National HTF has low and high HTF units, similar to low and high HOME.  

       True or False

Details | The National HTF only has one set of income and rent limits, based on HUD's extremely-low income (ELI) limits. See 24 CFR 93.302 (a)&(b). 

2. National HTF units are fixed or floating, like HOME. 

       True or False

Details | See 24 CFR 93.302 (f).

3. Like HOME, the National HTF carries an affordability period that is most often 20 years.

       True or False

Details | The National HTF affordability period is 30 years. See 24 CFR 93.302 (d)(1).

4. National HTF lease terms are generally for 12 months, as are HOME leases.  

       True or False

Details | See 24 CFR 93.303 (a)-(c).

Match the letters to the numbers that apply (more than one letter may apply).

1. Applicable Fraction     

a) is calculated for a building

b) involves unit size

 2. Minimum set-aside

c) is calculated for a project

d) does not involve unit size 

e) is an irrevocable election

3. True or False

The Average Income Test allows for a New York City 25-60 option

Details | See IRC Sec. 42 (g)(1)(C)(I)

4. True or False

The applicable fraction for a building can be found on  IRS form 8609.

Details | The eligible basis (line 7) and the qualified basis (line 8a) are found on the form but the applicable fraction is not. It can be algebraically calculated using the above lines, however.

1. Which agency will not provide rental assistance for zero income households who do not at least have exempt income.   

       HUD or Rural Development

Details | HUD allows zero-income households, but “it is recommended that owners have a policy to re-verify the status of tenants reporting zero income at least quarterly.” See HUD 4350.3 9-11 (D)(1)(a)

“It is the policy of Rural Development not to accept a tenant certification for an applicant or tenant with zero income unless all income is specifically exempted.” See HB-2-3560 6.9 (A)(4).

2. The IRS does not allow zero income households to qualify tax credit units? 

       True or False

Details | The IRS does not specifically forbid zero income households, however, “if the household reports little or zero income, or sporadic income, owners may use estimates based on actual income earned or received during the twelve-month period immediately preceding the certification. Owners should use due diligence by asking follow-up questions when the income certification process reveals unusual circumstances suggesting additional sources of income.” See 8823 Guide 4-33. The IRS LIHC Newsletter #15 (May 2005) provides further due diligence measures that owners can take to deal with households that represent that they have zero income.

Details | HERA Special limits are available to projects with at least one building placed in service in 2008 or earlier. A 2009 project does not qualify.

Details | Tax credit deals that are 4% "federally subsidized" are not eligible for the rural limits. HERA defined "federally subsidized" as tax-exempt bonds.

Details | Areas defined by USDA as eligible for RD assistance are eligible for the rural rent option. 

1. To ensure consistency, when a resident or applicant requests a reasonable accommodation, verification of the requester's disability must always be obtained.
     True or False

Details | Disabilities that are obvious or otherwise know to an owner/agent are not required. See Joint Statement of HUD and the DOJ on Reasonable Accommodations Under the Fair Housing Act, question 17.

2. How does a property owned by an entity whose legal name contains a religious reference (for example, St. Martin Lutheran Housing) avoid discrimination when advertising?

Details | By ensuring that all advertising is accompanied by a disclaimer that the housing is open to all without discrimination. See FHEO Guidance Regarding Advertisements under Section 804(c) of the Fair Housing Act, Jan. 9, 1995, page 1.

 3. Affordable housing federal income limits apply to a disabled person even if they make a reasonable accommodation request to the limits.
     True or False

Details | Reasonable accommodation "is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces." (Joint Statement of HUD and the DOJ on Reasonable Accommodations Under the Fair Housing Act, question 6).

Income limits and other provisions based on federal law, are not subject to accommodation.

1. We are not ever allowed to subtract amounts off of periodic payment sources to use net income when calculating gross annual income for a household.

     True or False.

Details | There are times when we take off certain amounts before calculating gross annual income for households.  

 2. If the above is False, create a list of exceptions.

NOTE: this does not represent all excluded income (per HUD 4350.3 Exhibit 5-1), but rather times when we commonly must calculate a lower amount from available information. 

1. Self-employment: "When calculating annual income, owners must include the net income from operation of a business or profession including self-employment income. Net income is gross income less business expenses, interest on loans, and depreciation computed on a straight-line basis." HUD 4350.3 5-6 H

2. Benefit adjusted for prior overpayment: "If an agency is reducing a family's benefits to adjust for a prior overpayment (e.g.,social security, SSI, TANF, or unemployment benefits), count the amount that is actually provided after the adjustment." HUD 4350.3 5-6 J

[calculation: gross social security less adjustment for prior overpayment]

3. Social Security delayed benefits: Excluded as income are the parts of payments that represent "deferred periodic amounts from supplemental security income and social security benefits that are received in a lump-sum amount or in prospective monthly amounts." HUD 4350.3 Exhibit 5-1 Income Exclusions(13). 

[calculation: gross social security less amounts for delayed benefits]

4. State, local government, social security or private pensions paid to
a former spouse:
"Other state, local government, social security or private pension funds paid directly to an applicant’s/tenant’s former spouse pursuant to the terms of a court decree of divorce, annulment, or legal separation are
also not counted as annual income." HUD 4350.3 5-6 L 5 

[calculation: gross social security less amounts ordered to former spouse]

5. VA deferred benefits for section 8 residents: "For Section 8 tenants only, any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum or in prospective monthly amounts are excluded from annual income." HUD 4350.3 5-6 Q 3

[calculation: gross VA benefit less amounts for delayed benefits]

6. Earned income for adult dependent full-time students: Income is excluded that is for "earnings in excess of $480 for each full-time student 18 years or older (excluding the head of household and spouse)." HUD 4350.3 Exhibit 5-1 Income Exclusions(11) 

[calculation: gross earned income less everything but $480]

7. Adoption assistance payments: "Adoption assistance payments in excess of $480 per adopted child" are excluded." HUD 4350.3 Exhibit 5-1 Income Exclusions(12) 

[calculation: gross adoption assistance payments less everything but $480]

8. Military hostile fire pay: Income exclusions include "the special pay to a family member serving in the Armed Forces who is exposed to hostile fire."HUD 4350.3 Exhibit 5-1 Income Exclusions(7).

[calculation: ALL military pay and allowances, less hostile fire pay]